Haryana’s GSDP rate rises to 9.8% this fiscal: Survey

Bhartesh Singh Thakur Chandigarh, March 8 Haryana’s Gross State Domestic Product (GSDP), at constant prices in 2021-22, is estimated to have a growth rate of 9.8 per cent compared to -5.3 per cent in 2020-21, according to the Economic Survey...

Tribune News Service

Updated At : 12:52 PM Mar 09, 2022 IST

Bhartesh Singh Thakur

Chandigarh, March 8

Haryana’s Gross State Domestic Product (GSDP), at constant prices in 2021-22, is estimated to have a growth rate of 9.8 per cent compared to -5.3 per cent in 2020-21, according to the Economic Survey of Haryana.

Higher than national rate
Haryana’s GSDP growth rate at 9.8% in the current fiscal will be higher than the country’s GDP growth rate of 9.2%
The level of the real GSDP in 2021-22 will surpass the pre-Covid level of Rs5.66 lakh crore, recorded in 2019-20, says the Survey
The Services sector was the hardest hit during the Covid pandemic as it involves human contact. Services’ share in the GSVA reduced from 48.4% in 2019-20 to 47.1% in 2020-21
Fall in vehicle registration
The Economic Survey points out that there has been a significant fall in vehicle registrations in the first two Covid waves due to lockdown and muted travel activity. But the fall in registrations of three-wheelers has been so profound that it has not yet achieved the average 2019-20 level.

The Survey was tabled today along with the Budget in the Haryana Legislative Assembly.

The GSDP at constant prices is estimated to be Rs 5.88 lakh crore in 2021-22. “This implies that the level of the real GSDP in 2021-22 will surpass the pre-Covid level of Rs 5.66 lakh crore, recorded in 2019-20,” says the Survey.

Haryana’s GSDP growth rate at 9.8 per cent in the current fiscal will be higher than the country’s GDP growth rate of 9.2 per cent.

When it comes to the Gross State Value Added (GSVA) index, which is the value of goods and services produced in the economy, at constant prices, the growth in industry at 11.5 per cent, Services at 10.1 per cent and agriculture at 2.6 per cent is estimated to fuel the overall growth of 9.2 per cent in the current fiscal.

The Survey says that the Services sector was the hardest hit during the Covid pandemic as it involves human contact. Services’ share in the GSVA reduced from 48.4 per cent in 2019-20 to 47.1 per cent in 2020-21. It has increased to 47.5 per cent in 2021-22, while the industry’s contribution is 35.6 per cent and that of Agriculture is 16.9 per cent.

In sector-wise analysis, the Survey pointed out that since 2018-19, when 9 per cent growth rate was recorded in agriculture, there has been a slump as just 4.8 per cent was recorded in 2019-20, while 2020-21 witnessed negative growth of 2.5 per cent. In the current fiscal, it is estimated to grow at 2.6 per cent. “The economic growth of the state has become more dependent on the growth in Industry and Services sectors during the past few years. However, the recent experience suggests that high GSVA growth without sustained and rapid agricultural growth is likely to accelerate inflation in the state, jeopardising the larger growth process. Therefore, the growth of agriculture and allied sectors continues to be a critical factor in the overall performance of the state’s economy,” says the Survey.

There was a 13 per cent growth rate in the GSVA in the industry in 2018-19 which fell to 7.5 per cent in 2019-20 and further to -1.7 per cent in 2020-21 under the Covid impact. But it has rebound and is estimated to grow at 11.5 per cent in the current fiscal, on the back of manufacturing which is estimated to grow at 11.8 per cent; construction at 10.7 per cent; electricity, gas, water supply and other utility services at 10.9 per cent and mining and quarrying at 9.7 per cent.

The GSVA from the Services reflected a growth rate of 8.1 per cent in 2018-19, which fell to 5.4 per cent in 2019-20 and further to -6.8 per cent in 2020-21. But it is estimated to grow at 10.1 per cent in the current fiscal, fuelled by 13.2 per cent growth in transport, storage, communication and Services related to broadcasting; 11.8 per cent in hotels, restaurants, repair and trade; 11.6 per cent in public administration and Defence, and 7.9 per cent in real estate, financial and professional services.

The Economic Survey points out that there has been a significant fall in the vehicle registrations in the first two Covid waves due to lockdown and muted travel activity. But the fall in registrations of three-wheelers has been so profound that it has not yet achieved the average 2019-20 level.